A split federal appeals court ruled Friday that President Donald Trump can move forward with mass firings at the Consumer Financial Protection Bureau (CFPB), concluding that a lower court lacked the jurisdiction to temporarily block the action, according to court records.
However, the panel delayed the ruling from taking immediate effect, giving attorneys for CFPB employees and pro-consumer advocacy groups an opportunity to request a rehearing before the full U.S. Court of Appeals for the District of Columbia Circuit.
Why It Matters
In February, Office of Management and Budget Director Russell Vought directed the CFPB to stop work on proposed rules, stop investigative work and "cease all supervision and examination activity," according to an email obtained by the Associated Press.
The CFPB was created after the 2007-2008 financial crisis. The agency helps ensure that markets for consumer financial products are "transparent, fair, and competitive," according to the agency's website. Since its creation, the CFPB has secured over $21 billion in monetary compensation, principal reductions, canceled debts and other consumer relief.
The CFPB was created by Congress, which means it would require a separate act of Congress to formally eliminate it.
What To Know
The case was decided by Circuit Judges Gregory Katsas, Neomi Rao and Cornelia Pillard. Katsas and Rao, both Trump appointees, were in the majority. Pillard, an Obama appointee, dissented.
"We hold that the district court lacked jurisdiction to consider the claims predicated on loss of employment," the majority wrote.
In a dissent, Pillard wrote, "It is emphatically not within the discretion of the President or his appointees to decide that the country would benefit most if there were no Bureau at all."
Earlier this year, U.S. District Judge Amy Berman Jackson directed the government to stop firing CPFB employees, except for reasons relating to performance or misconduct. The order also blocked Vought from defunding the agency.
What People Are Saying
Attorney General Pam Bondi, on X: "Another victory for President Trump! In a 2-1 ruling, the DC Circuit sided with my [Justice Department] attorneys in our effort to dismantle the CFPB and rein in crippling Obama-era regulations. We will continue to pursue the President's deregulation efforts."
Trump administration gets major court win
However, the panel delayed the ruling from taking immediate effect, giving attorneys for CFPB employees and pro-consumer advocacy groups an opportunity to request a rehearing before the full U.S. Court of Appeals for the District of Columbia Circuit.
Why It Matters
In February, Office of Management and Budget Director Russell Vought directed the CFPB to stop work on proposed rules, stop investigative work and "cease all supervision and examination activity," according to an email obtained by the Associated Press.
The CFPB was created after the 2007-2008 financial crisis. The agency helps ensure that markets for consumer financial products are "transparent, fair, and competitive," according to the agency's website. Since its creation, the CFPB has secured over $21 billion in monetary compensation, principal reductions, canceled debts and other consumer relief.
The CFPB was created by Congress, which means it would require a separate act of Congress to formally eliminate it.
What To Know
The case was decided by Circuit Judges Gregory Katsas, Neomi Rao and Cornelia Pillard. Katsas and Rao, both Trump appointees, were in the majority. Pillard, an Obama appointee, dissented.
"We hold that the district court lacked jurisdiction to consider the claims predicated on loss of employment," the majority wrote.
In a dissent, Pillard wrote, "It is emphatically not within the discretion of the President or his appointees to decide that the country would benefit most if there were no Bureau at all."
Earlier this year, U.S. District Judge Amy Berman Jackson directed the government to stop firing CPFB employees, except for reasons relating to performance or misconduct. The order also blocked Vought from defunding the agency.
What People Are Saying
Attorney General Pam Bondi, on X: "Another victory for President Trump! In a 2-1 ruling, the DC Circuit sided with my [Justice Department] attorneys in our effort to dismantle the CFPB and rein in crippling Obama-era regulations. We will continue to pursue the President's deregulation efforts."
Trump administration gets major court win